What is Accounting?

Accounting is the art of recording transactions in the best manner possible, so as to enable the reader to arrive at judgments/come to conclusions, and in this regard, it is utmost necessary that there are set guidelines. These guidelines are generally called accounting policies.

The intricacies of accounting policies permitted Companies to alter their accounting principles for their benefit. This made it impossible to make comparisons. In order to avoid the above and to have a harmonized accounting principle, Standards needed to be set by recognized accounting bodies. This paved the way for Accounting Standards to come into existence.

Accounting Standards in India are issued By the Institute of Chartered Accountants of India (ICAI).

Objective of Accounting Standards

The objective of Accounting Standards is to standardize the diverse accounting policies and practices with a view to eliminate to the extent possible the non-comparability of financial statements and the reliability to the financial statements.

The Institute of Chartered Accountants of India, recognizing the need to harmonize the diverse accounting policies and practices, constituted at Accounting Standard Board (ASB) on 21st April 1977.

Compliance with Accounting Standards issued by ICAI

Sub Section(3A) to section 211 of Companies Act, 1956 requires that every Profit/Loss Account and Balance Sheet shall comply with the Accounting Standards. ‘Accounting Standards’ means the standard of accounting recommended by the ICAI and prescribed by the Central Government in consultation with the National Advisory Committee on Accounting Standards(NACAs) constituted under section 210(1) of Companies Act, 1956.

List of Indian Accounting Standards

Indian Accounting Standard No (IAS No)

Name of Indian Accounting Standard

Ind AS 101

First-time Adoption of Indian Accounting Standards

Ind AS 102

Share-based Payment

Ind AS 103

Business Combinations

Ind AS 104

Insurance Contracts

Ind AS 105

Non-current Assets Held for Sale and Discontinued Operations

Ind AS 106

Exploration for and Evaluation of Mineral Resources

Ind AS 107

Financial Instruments: Disclosures

Ind AS 108

Operating Segments

Ind AS 109

Financial Instruments

Ind AS 110

Consolidated Financial Statements

Ind AS 111

Joint Arrangements

Ind AS 112

Disclosure of Interests in Other Entities

Ind AS 113

Fair Value Measurement

Ind AS 114

Regulatory Deferral Accounts

Ind AS 115

Revenue from Contracts with Customers

Ind AS 1

Presentation of Financial Statements

Ind AS 2

Inventories

Ind AS 7

Statement of Cash Flows

Ind AS 8

Accounting Policies, Changes in Accounting Estimates and Errors

Ind AS 10

Events after the Reporting Period

Ind AS 12

Income Taxes

Ind AS 16

Property, Plant, and Equipment

Ind AS 17

Leases

Ind AS 19

Employee Benefits

Ind AS 20

Accounting for Government Grants and Disclosure of Government Assistance